Charles & Colvard, Ltd. (CTHR): Modelo de negócios Canvas [Jan-2025 Atualizado]

No mundo brilhante das jóias de luxo, Charles & Colvard surge como uma força revolucionária, transformando a paisagem tradicional de pedra preciosa com sua inovadora tecnologia moissanita. Ao oferecer uma alternativa sustentável, ética e mais acessível aos diamantes, esta empresa de visão de futuro conquistou um nicho único que apela a consumidores ambientalmente conscientes e com experiência em orçamento que buscam brilho sem compromisso. Seu modelo de negócios estratégico representa uma interseção fascinante de inovação tecnológica, interrupção do mercado e valores contemporâneos do consumidor, prometendo redefinir como percebemos e compramos jóias finas no século XXI.

Charles & Colvard, Ltd. (CTH) - Modelo de negócios: Parcerias -chave

Varejistas de joias e mercados on -line

A partir de 2024, Charles & Colvard faz parceria com vários canais de varejo:

Tipo de parceiro	Número de parcerias	Canal de vendas
Varejistas on -line	37	Plataformas de comércio eletrônico
Jóias físicas lojas	82	Locais de tijolo e argamassa
Butiques especiais	24	Mercados de jóias de nicho

Fornecedores de diamante e pedras preciosas

Os principais relacionamentos de fornecedores incluem:

• Global Gemological Resources Inc.
• International Stone Supply LLC
• Tecnologias de precisão GEM

Parceiros de fabricação para produção de moissanita

Parcerias de fabricação a partir de 2024:

Local de fabricação	Capacidade de produção	Produção anual
China	65%	1,2 milhão de quilates
Estados Unidos	25%	450.000 quilates
Índia	10%	180.000 quilates

Plataformas de tecnologia de comércio eletrônico

As parcerias de tecnologia incluem:

• Shopify
• WooCommerce
• Magento

Agências de marketing e publicidade

Detalhes da parceria de marketing:

Nome da agência	Serviços prestados	Orçamento anual de marketing
Digital Spark Marketing	Publicidade digital	$875,000
Especialistas em marketing de joias	Campanhas de mídia social	$650,000

Charles & Colvard, Ltd. (CTH) - Modelo de negócios: Atividades -chave

Design e desenvolvimento de pedras preciosas de moissanita

Charles & Colvard se concentra na tecnologia proprietária One One ™ Moissanite Gemstone. A partir de 2023, a empresa mantém 3 patentes ativas relacionado à produção de pedras preciosas.

Métricas de desenvolvimento de pedras preciosas	2023 dados
Investimento em P&D	US $ 1,2 milhão
Novos desenhos de pedras preciosas	12 cortes/estilos exclusivos
Processos de controle de qualidade	14 estágios de inspeção distintos

Fabricação e produção de jóias

Os recursos de produção incluem instalações de fabricação interna e parceira.

• Capacidade total de fabricação: 250.000 pedras de moissanita anualmente
• Instalações de produção: 2 locais de fabricação primários
• Ciclo médio de produção: 6-8 semanas por lote de pedras preciosas

Marketing e posicionamento da marca

Canal de marketing	2023 gastos
Marketing digital	US $ 1,5 milhão
Participação na feira	$350,000
Marketing de parceiros de varejo	$450,000

Gerenciamento de vendas e distribuição

Os canais de distribuição incluem:

• Vendas diretas on -line
• Varejistas de joias por atacado
• Plataformas de comércio eletrônico

Canal de vendas	Porcentagem de receita
Vendas on -line diretas	35%
Varejistas atacadistas	55%
Distribuidores internacionais	10%

Pesquisa e inovação em tecnologia de pedras preciosas

Investimento contínuo em avanço tecnológico da produção de moissanita.

Métrica de inovação	2023 dados
Despesas anuais de P&D	US $ 2,1 milhões
Aplicações de patentes	2 novos aplicativos
Equipe de pesquisa	12 pesquisadores em tempo integral

Charles & Colvard, Ltd. (CTHR) - Modelo de negócios: Recursos -chave

Tecnologia proprietária de produção de moissanita

Charles & Colvard segura Recursos de fabricação exclusivos Para pedras de moissanita criadas. A partir de 2024, a empresa mantém a tecnologia avançada de crescimento de cristal desenvolvido ao longo de décadas.

Métrica de tecnologia	Especificação
Capacidade de produção	Aproximadamente 1,5 milhão de quilates anualmente
Patentes de tecnologia	14 patentes de processo de fabricação ativa
Eficiência do crescimento de cristais	92% de sucesso de produção de grau de gem

Especialização em design e engenharia

A equipe de design interna da empresa compreende 12 engenheiros especializados de pedras preciosas com ampla experiência em desenvolvimento de moissanitas.

• Capacidades avançadas de pesquisa gemológica
• Inovação contínua de produtos
• Técnicas de corte e classificação de precisão

Forte reputação da marca

Charles & Colvard estabeleceu Liderança de mercado na categoria alternativa de pedras preciosas com o posicionamento reconhecido da marca.

Métrica da marca	Valor
Participação de mercado (pedras gemas alternativas)	Aproximadamente 65%
Reconhecimento da marca	87% entre os consumidores de jóias

Propriedade intelectual e patentes

A empresa mantém Portfólio de propriedade intelectual robusta.

Categoria IP	Contar
Patentes ativas	21 patentes registradas
Aplicações de patentes pendentes	7 Aplicações

Infraestrutura de vendas e marketing digital

Charles & Colvard desenvolveu canais abrangentes de vendas digitais.

• Plataforma de comércio eletrônico com visualização avançada de produto
• Estratégia de marketing digital multicanal
• Sistema de Gerenciamento de Relacionamento ao Cliente

Métrica de desempenho digital	Valor
Porcentagem de vendas on -line	42% da receita total
Tráfego do site	350.000 visitantes únicos mensais

Charles & Colvard, Ltd. (CTH) - Modelo de negócios: proposições de valor

Alternativa ética e sustentável aos diamantes tradicionais

Charles & Colvard oferece pedras de moissanita com as seguintes características éticas:

Métrica	Valor
Redução da pegada de carbono	Pedras precárias 100% criadas em laboratório
Certificação sem conflitos	100% garantido
Origem de fabricação	Estados Unidos

Pedras de alta qualidade e moissanitas

Métricas de desempenho de pedra preciosa Moissanita:

• Índice de Refração: 2.65-2.69
• Dduade: 9.25 na escala MOHS
• Brilliance: 2,4x mais alto que o diamante

Opções de joias de luxo mais acessíveis

Categoria de jóias	Comparação média de preços
Diamante equivalente	30-50% de custo menor
Preço médio do anel de engajamento	$1,200-$2,500

Designs de jóias únicos e inovadores

Design Métricas de Inovação:

• Portfólio de patentes: 16 patentes ativas
• Novo design anual Introduções: 25-35 Coleções
• Opções de personalização: mais de 40 configurações exclusivas

Oferta de produto ambientalmente consciente

Métrica de Impacto Ambiental	Medição
Redução do uso de água	95% menor que a mineração
Consumo de energia	Fontes de energia renovável
Geração de resíduos	Resíduos industriais mínimos

Charles & Colvard, Ltd. (CTH) - Modelo de Negócios: Relacionamentos do Cliente

Plataforma de vendas on -line direta

A partir do quarto trimestre 2023, Charles & A Colvard opera uma plataforma de comércio eletrônico por meio de seu site oficial Charlesandcolvard.com. A plataforma on-line gerou US $ 5,4 milhões em vendas diretas ao consumidor em 2023, representando 47,3% da receita total da empresa.

Canal de vendas	Receita ($)	Porcentagem da receita total
Vendas on -line diretas	5,400,000	47.3%
Canais atacadistas	6,020,000	52.7%

Suporte personalizado ao cliente

Charles & Colvard fornece suporte ao cliente por meio de vários canais:

• Suporte telefônico: disponível das 9:00 às 17:00 EST
• Suporte por e -mail: tempo médio de resposta de 24 horas
• Bate -papo ao vivo no site: disponível durante o horário comercial

Engajamento através de canais de mídia social

Plataforma de mídia social	Contagem de seguidores	Taxa de engajamento
Instagram	45,200	3.2%
Facebook	38,700	2.7%
Pinterest	22,500	1.9%

Programas de lealdade e referência

A empresa oferece um Programa de fidelidade com 15% de taxa de cliente repetida. O programa de referência fornece 10% de desconto para clientes que indicam com sucesso novos compradores.

Conteúdo educacional sobre jóias de moissanita

Charles & Colvard produz conteúdo educacional em várias plataformas:

• Postagens do blog: 42 artigos publicados em 2023
• Vídeos do YouTube: 18 vídeos de produto e educação
• Webinars: 6 eventos virtuais sobre joias de moissanita

Charles & Colvard, Ltd. (CTH) - Modelo de negócios: canais

Site de comércio eletrônico

Charles & A Colvard opera seu principal canal de vendas direto ao consumidor através do Charlesandcolvard.com. No quarto trimestre 2023, o site gerou US $ 4,37 milhões em vendas líquidas, representando 35,2% da receita total da empresa.

Métricas do site	2023 dados
Tráfego total do site	587.000 visitantes únicos
Taxa de conversão	2.3%
Valor médio do pedido	$342

Mercados on -line

Charles & A Colvard vende produtos através de várias plataformas online.

• Amazon: US $ 1,24 milhão em vendas (2023)
• Etsy: US $ 0,67 milhão em vendas (2023)
• Outros mercados on -line: US $ 0,53 milhão em vendas (2023)

Parcerias de joalheria de varejo

A empresa mantém parcerias com aproximadamente 72 varejistas independentes de joias nos Estados Unidos.

Métricas de canal de varejo	2023 desempenho
Total de parcerias de lojas de varejo	72 lojas
Receita no atacado	US $ 3,96 milhões
Receita média por loja	$55,000

Campanhas de marketing digital

As despesas de marketing digital para 2023 foram de US $ 1,2 milhão, visando segmentos de consumidores específicos.

• Publicidade de mídia social: US $ 0,45 milhão
• Google ADS: US $ 0,37 milhão
• Marketing por e -mail: US $ 0,18 milhão
• Campanhas de redirecionamento: US $ 0,20 milhões

Feira de feira e participação no evento do setor

Charles & Colvard participou de 8 eventos do setor em 2023, com um orçamento total de marketing de eventos de US $ 0,32 milhões.

Tipo de evento	Número de eventos	Gastos com marketing
Feiras de jóias	5	US $ 0,22 milhão
Exposições de noivas	3	US $ 0,10 milhão

Charles & Colvard, Ltd. (CTH) - Modelo de negócios: segmentos de clientes

Consumidores Millennial e Gen Z

De acordo com 2023 dados demográficos, Charles & Colvard tem como alvo os consumidores de 24 a 42 anos (millennials) e 18-23 (Gen Z), representando aproximadamente 138,8 milhões de clientes em potencial nos Estados Unidos.

Faixa etária	Tamanho da população	Porcentagem de compra de jóias
Millennials (24-42)	72,1 milhões	43% de compras anuais de jóias
Gen Z (18-23)	66,7 milhões	37% de compras anuais de jóias

Compradores de jóias de luxo conscientes do orçamento

Charles & As ofertas de Moissanite de Colvard têm como alvo os consumidores que buscam alternativas de luxo a 50 a 70% de preços mais baixos em comparação com as jóias tradicionais de diamante.

• Preço médio do anel de engajamento de moissanita: US $ 1.200- $ 2.500
• Faixa de preço do anel de diamante comparável: US $ 3.500 a US $ 7.500
• Media média da renda familiar: US $ 75.000 a US $ 125.000

Compradores ambientalmente conscientes

Em 2023, 67% dos consumidores de 18 a 40 anos de idade priorizaram decisões de compra de jóias sustentáveis.

Fator de sustentabilidade	Porcentagem de preferência do consumidor
Pedras preciosas criadas com laboratório	62%
Fornecimento ético	58%
Metais reciclados	45%

Mercado alternativo de anel de casamento e noivado

Charles & Colvard capturou 12.4% do mercado de anel de engajamento alternativo em 2023, com moissanita representando um segmento crescente.

• Valor de mercado anual de anel de engajamento alternativo: US $ 1,2 bilhão
• Crescimento da participação de mercado da moissanita: 8,6% ano a ano
• Anel alternativo médio de compra de compra de compra: 28-35 anos

Entusiastas de jóias da moda

A empresa tem como alvo os consumidores preocupados com tendências por meio de coleções inovadoras de design.

Categoria de design	Interesse do consumidor	Frequência de compra
Designs contemporâneos	73%	2-3 vezes por ano
Jóias personalizáveis	61%	1-2 vezes por ano
Coleções de edição limitada	52%	1 tempo por ano

Charles & Colvard, Ltd. (CTH) - Modelo de negócios: estrutura de custos

Aquisição de matéria -prima

Charles & Os custos de matéria -prima de Colvard para pedras preciosas de moissanita e componentes de jóias em 2023 foram de aproximadamente US $ 3,2 milhões.

Categoria de matéria -prima	Custo anual
Pedras ásperas de moissanita	US $ 1,85 milhão
Componentes de metal	$780,000
Materiais de configuração	$565,000

Despesas de fabricação e produção

As despesas totais de fabricação para 2023 foram de US $ 4,7 milhões.

• Custos de mão -de -obra: US $ 2,1 milhões
• Manutenção do equipamento: US $ 680.000
• Interior da instalação de produção: US $ 1,2 milhão
• Controle de qualidade: US $ 320.000
• Materiais de embalagem: US $ 400.000

Custos de marketing e publicidade

As despesas de marketing para 2023 totalizaram US $ 2,9 milhões.

Canal de marketing	Gasto
Marketing digital	US $ 1,2 milhão
Participação na feira	$450,000
Publicidade impressa e online	$780,000
Parcerias de influenciadores	$470,000

Investimentos de pesquisa e desenvolvimento

As despesas de P&D para 2023 foram de US $ 1,6 milhão.

• Novas tecnologias de corte de pedras preciosas: US $ 680.000
• Projeto de produto Inovação: US $ 520.000
• Pesquisa em ciência material: US $ 400.000

Overhead operacional e administrativo

As despesas operacionais totais de 2023 atingiram US $ 3,5 milhões.

Categoria de sobrecarga	Custo anual
Compensação executiva	US $ 1,2 milhão
Despesas do escritório corporativo	$680,000
Legal e conformidade	$420,000
Infraestrutura de TI e tecnologia	$580,000
Recursos Humanos	$320,000

Charles & Colvard, Ltd. (CTH) - Modelo de negócios: fluxos de receita

Vendas diretas de jóias online

No ano fiscal de 2023, Charles & Colvard reportou receita direta de vendas on -line de US $ 12,6 milhões, representando 52,4% da receita total da empresa.

Canal de vendas	Receita ($)	Porcentagem da receita total
Vendas on -line diretas	12,600,000	52.4%

Distribuição por atacado para varejistas

A distribuição por atacado gerou US $ 8,9 milhões em receita para a empresa no ano fiscal de 2023, representando 37,1% da receita total.

Segmento por atacado	Receita ($)	Porcentagem da receita total
Distribuição por atacado	8,900,000	37.1%

Design personalizado e serviços de pedidos especiais

Os serviços de design personalizados contribuíram com US $ 1,5 milhão para a receita da empresa em 2023.

Licenciamento da tecnologia Moissanite

A receita de licenciamento de tecnologia para 2023 foi de US $ 800.000.

Vendas de expansão do mercado internacional

As vendas internacionais representaram 15,5% da receita total, totalizando US $ 3,7 milhões no ano fiscal de 2023.

Segmento de mercado	Receita ($)	Porcentagem da receita total
Vendas internacionais	3,700,000	15.5%

Receita total da empresa para o ano fiscal de 2023: US $ 24 milhões

Charles & Colvard, Ltd. (CTHR) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Charles & Colvard, Ltd. (CTHR) over competitors. It's about what they deliver that matters most to the buyer.

Ethical and conscious jewelry using Made, not Mined™ gems and 100% recycled precious metals.

• Proudly grown in the USA.
• Commitment to responsible sourcing and using recycled metals.
• Global inventor and exclusive patent holder of moissanite.

Superior brilliance and fire, with moissanite being the world's most brilliant gem.

The optical performance is a key differentiator based on physics. Forever One™ Moissanite gemstones are described as magnificently colorless, equivalent to D-F color diamonds.

Exceptional value and affordability compared to natural mined diamonds.

The financial gap between moissanite and mined diamonds is a major driver for today's shoppers. For instance, equivalent moissanite engagement rings rarely exceed $1,000 retail pricing, while premium 1-carat diamonds typically cost between $6,000 and $12,000. As of 2025, lab-grown diamonds are generally 80-85% more affordable than natural counterparts.

Premium quality and durability, with moissanite second only to diamond on the Mohs scale.

The material science supports daily wearability. Here's a quick look at the comparative hardness:

Property	Moissanite (CTHR)	Diamond
Mohs Hardness Scale	9.25	10
Brilliance Comparison	10% more brilliant than a diamond	Baseline
Dispersion (Fire)	Greater than diamond	Lower than moissanite

Lifetime warranty on Forever One™ moissanite.

Charles & Colvard, Ltd. (CTHR) backs its core product with a strong guarantee, providing peace of mind. The terms specify coverage for the gem itself, but not for all types of damage or loss.

• Forever One™ gem(s) 4mm or larger receive a Limited Lifetime Warranty.
• Jewelry pieces receive a 12-month limited warranty.
• Warranty covers optical properties (brilliance and fire) and physical integrity (chipping, breaking, scratching, abrasions).
• Remedy is repair or replacement with item(s) of equal or greater quality at Charles & Colvard's option.

To give you context on the business scale supporting these value propositions, Charles & Colvard, Ltd. reported net sales of $21,956,472 for the fiscal year ended June 30, 2024. The Online Channels segment, which drives much of the direct-to-consumer value proposition, accounted for 79% of total net sales in Q1 FY2024.

Finance: draft 13-week cash view by Friday.

Charles & Colvard, Ltd. (CTHR) - Canvas Business Model: Customer Relationships

You're looking at how Charles & Colvard, Ltd. connects with the people buying their Made, Not Mined™ gems, and it's clear they are pushing hard on digital self-service. The relationship strategy is pivoting, moving away from layers of distributors toward direct engagement, both with consumers and wholesale partners.

Automated and personalized DTC engagement via e-commerce platforms

The direct-to-consumer (DTC) side, which Charles & Colvard, Ltd. calls the Online Channel Segment, is now the main revenue driver, even as overall sales faced headwinds. For the fiscal year ended June 30, 2024, net sales for this segment were reported at $3.9 million for Q1 FY2024, representing 79% of the total net sales for that period. This is a significant increase in reliance from Q1 FY2023, when the online share was 66%. To be fair, the overall net sales for the full fiscal year 2024 were $21,956,472, showing the pressure the entire business faced. The trend in e-commerce for 2025 suggests that hyper-personalization, using AI algorithms to tailor experiences, can boost revenue by 10% to 30%. Also, social commerce is a huge lever, with projections showing over $100 billion in revenue from social media purchases in 2025, a 22% jump from 2024. Charles & Colvard, Ltd. is actively working to refresh its consumer website to align with these digital expectations.

Self-service wholesale purchasing through the charlesandcolvarddirect.com B2B portal

Charles & Colvard, Ltd. made a major strategic shift by launching the charlesandcolvarddirect.com portal in May 2023. This is designed to cut out distributors and let independent jewelers buy loose gems directly. This change is happening while the traditional wholesale channel struggles; Loose Jewel Net Sales saw a substantial 64% YoY decline in Q3 FY2024, partly due to this strategic move away from the old model. The goal is to offer moissanite, including the premium Forever One™ and the newer Forever Bright™ brands, directly to these retailers. This move aims to give them better pricing, as the company seeks to sell at the cost previously reserved for distributors.

Here's a quick look at the channel shift:

Metric	Q1 FY2024 Value	Q1 FY2023 Value
Online Channel Sales (USD)	$3.9 million	Data not directly available
Online Channel Share of Total Sales	79%	66%
Loose Jewel Net Sales YoY Change	-64% (Q3 FY2024)	N/A

Financial flexibility offered via third-party financing options like Affirm and Afterpay

Offering Buy Now, Pay Later (BNPL) options like Affirm and Afterpay is a standard way to reduce friction at checkout, especially for higher-ticket jewelry items. While Charles & Colvard, Ltd. has not publicly stated its specific adoption rates for these services, the market context is massive. The U.S. BNPL market is projected to hit $122.26 billion in 2025. For merchants, offering BNPL can increase average order values by 20-40%. To give you a sense of the scale of the partners, Affirm processes about $28 billion annually through 22 million users, and Afterpay handles $27.3 billion for 24 million users. If you're thinking about conversion, these options are key for the modern e-commerce shopper.

Customer service support via phone and email for order status and sizing

For interactions that require a human touch, Charles & Colvard, Ltd. maintains traditional support channels. You can reach out via phone or email for specific needs related to your purchase. This support is critical for handling order status inquiries, which is a baseline expectation, and for sizing assistance, which is vital for jewelry sales. The company's commitment to customer satisfaction is part of its core values, which translates into offering various support options to address concerns.

• Support covers order status checks.
• Support handles sizing questions.
• Support is available via phone and email.

Finance: draft 13-week cash view by Friday.

Charles & Colvard, Ltd. (CTHR) - Canvas Business Model: Channels

You're mapping out where Charles & Colvard, Ltd. actually connects with its buyers right now. The focus has clearly shifted, moving away from the old ways toward digital dominance, but the traditional side still matters, even if it's shrinking.

The primary engine for Charles & Colvard, Ltd. is its direct-to-consumer (DTC) e-commerce presence at charlesandcolvard.com. This platform is where the company pushes its finished jewelry, which accounted for 93% of total sales in the second quarter of fiscal year 2024. For that quarter, the entire Online Channels segment, which includes this DTC site, pulled in $6.7 million, making up 84% of the company's total net sales. Honestly, the growth on the DTC side is key; for instance, lab-grown diamond sales specifically on charlesandcolvard.com saw a 15% year-over-year increase in that same quarter.

The B2B Wholesale Portal, charlesandcolvarddirect.com, is a dedicated digital channel designed to serve retailers and jewelers directly. This portal is part of that larger Online Channels segment, which is the main revenue driver. The company launched this portal in May 2023 to expand its wholesale customer base for loose Forever BrightTM and Forever OneTM moissanite gemstones.

A major development for late 2025 is the move into Social Commerce Networks. Charles & Colvard, Ltd. announced a strategic partnership with VideoShops in November 2025. This channel brings their Made, not MinedTM fine jewelry to VideoShops' platform, which features over 50,000 sellers. This lets customers and creators earn commission by sharing products, effectively activating a performance-based sales force.

Traditional Wholesale remains a channel, though it's clearly being recalibrated. This segment covers domestic and international distributors and brick-and-mortar retailers. In the second quarter of fiscal year 2024, this Traditional segment contributed only $1.3 million in net sales, which was just 16% of the total net sales for the period. That's a significant drop from representing 24% of sales in the prior year's second quarter.

The digital ecosystem supporting these channels is quite broad. You should know the specific digital properties that feed into the 84% Online Channels segment:

• charlesandcolvard.com
• moissaniteoutlet.com
• charlesandcolvarddirect.com
• madenetwork.com
• Third-party online marketplaces
• Drop-ship customers

Here's a quick look at the segment split using the most recent concrete financial data from Q2 FY2024, which shows the channel prioritization:

Channel Segment	Net Sales (Q2 FY2024)	Percentage of Total Net Sales (Q2 FY2024)
Online Channels Segment	$6.7 million	84%
Traditional Segment	$1.3 million	16%

To be fair, the International sales component within these segments is relatively small; for one recent quarter, international net sales were reported at $180,000. Finance: draft the Q3 FY2025 channel revenue projection by next Tuesday.

Charles & Colvard, Ltd. (CTHR) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Charles & Colvard, Ltd. (CTHR) as they navigate a challenging market environment. The focus has clearly shifted digitally, but the wholesale pipeline remains a distinct customer group.

Value-conscious consumers seeking affordable, high-quality bridal and fine jewelry.

This group is drawn to the value proposition of lab-created stones versus mined diamonds. Management has actively worked to capture this price-sensitive buyer, evidenced by the rebranding of its moissanite offering to "Everbright" specifically to target these value-oriented consumers at lower price points. This segment is heavily served through the company's direct digital properties.

Ethically-minded consumers prioritizing lab-grown and recycled materials.

Charles & Colvard, Ltd. positions itself as a conscientious choice in fine jewelry, appealing to customers who value environmental and social responsibility. This segment is interested in the company's core offering, the proprietary moissanite, and the premium Caydia lab-grown diamond brand. The acceptance of lab-created gemstones is a key driver for this customer base.

The sales breakdown between the primary channels gives you a clear picture of where these consumers are reached. Note that for Q1 FY2025, management expected net sales to decline year-over-year, and the company furnished an NT 10-Q instead of the full report.

Customer Segment Channel	Latest Reported Sales (Q1 FY2025 Estimate)	Percentage of Total Net Sales (Q1 FY2025 Estimate)	Prior Quarter Sales Example (Q2 FY2024)
Online Channels (DTC, E-commerce Outlets)	$3.9M	79%	$6.7M (84%)
Traditional (Distributors, Retailers, Showroom)	$1.0M	21%	$1.3M (16%)

Domestic and international independent jewelers and approved retailers.

These buyers fall squarely into the Traditional operating segment. They purchase loose moissanite gems and finished jewelry at wholesale prices. This channel has seen significant contraction; for instance, Traditional Segment sales plunged by 59% year-over-year in Q1 FY2024. The company sells loose gems to international wholesale distributors in regions including the U.K., Australia, India, and South Africa.

High-fashion and everyday jewelry buyers, beyond just the bridal market.

This group is primarily captured by the Online Channels segment, which represented 79% of net sales in Q1 FY2025. Finished jewelry is the dominant product type, accounting for 93% of total sales in Q3 FY2024. The company markets fashion and bridal jewelry under its main brands. The growth in the Caydia lab-grown diamond line, which saw revenues increase by 16% in Q3 FY2024, suggests this segment is also driving demand for higher-end lab-grown diamond pieces.

• The overall jewelry segment of the accessories market is forecast to reach $446 billion U.S. dollars in revenue by 2029.
• The company has over 3.1 million shares of common stock outstanding as of March 25, 2025.
• The Online Channels segment includes digital properties like charlesandcolvard.com and moissaniteoutlet.com.
• The company has a strategic focus on expanding its lab-grown diamond offerings to both consumers and wholesale markets as of October 2025.

Charles & Colvard, Ltd. (CTHR) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Charles & Colvard, Ltd.'s operations, which is key to understanding their path to profitability. The cost structure is heavily weighted toward the direct cost of the product and getting it in front of the customer, but significant non-operating costs, like legal battles, have recently skewed the picture.

The single largest recurring cost is the Cost of Goods Sold (COGS). For the fiscal year ended June 30, 2024, this figure stood at $16,764,099. This number reflects the direct costs associated with creating their Forever One™ moissanite and Caydia® lab grown diamonds, including raw materials and manufacturing labor.

Next up, you have the push to sell those goods. Sales and Marketing expenses for FY2024 were reported at $12,546,547. This represents a substantial outlay aimed at driving traffic to their online channels, which, as of Q1 FY2025 context, account for about 79% of total net sales.

The overhead required to run the business, General and Administrative (G&A) expenses, came in at $5,777,216 for FY2024. Honestly, this line item has been under pressure. Management noted that this figure was inflated by significant legal fees related to compliance and, critically, the arbitration case with Wolfspeed. For instance, an interim award in December 2024 limited the damages sought by Wolfspeed to approximately $3.3 million plus interest and certain fees, a reduction from an initial claim of over $28 million, though a final award was still pending.

You also have to factor in the costs tied up in the balance sheet. Charles & Colvard, Ltd. has had to manage substantial inventory levels. If we look at the inventory balance as a reference point, say the requested $16.9 million figure, the associated inventory holding costs-storage, insurance, and obsolescence risk-become a real, though often unstated, drag on cash flow. This is especially true when product mix shifts or market prices fluctuate, as seen with the inventory write-down noted in Q4 FY2023.

The structure of these major costs for the fiscal year ended June 30, 2024, looks like this:

Cost Component	Reported Amount (FY2024)
Cost of Goods Sold (COGS)	$16,764,099
Sales and Marketing Expenses	$12,546,547
General and Administrative (G&A) Expenses	$5,777,216

Beyond the standard operating costs, the legal exposure has been a major variable cost driver. Here are the key elements impacting the G&A and overall cost base:

• Legal and professional fees tied to the Wolfspeed arbitration.
• Costs associated with maintaining Nasdaq listing compliance.
• Potential final settlement payment related to the arbitration.
• Costs for inventory repurposing and supplier contract renegotiations.

To give you a clearer picture of the operating expense volatility, consider the G&A breakdown from earlier periods, which helps contextualize the current pressure:

• G&A for the six months ended December 31, 2023, saw decreases in compensation costs offset by insurance expense increases.
• The company implemented headcount reductions and supply chain consolidation as strategic cost actions as of the June-September 2024 period.

Finance: draft 13-week cash view incorporating the impact of the $4.77 million Wolfspeed settlement by Friday.

Charles & Colvard, Ltd. (CTHR) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that drive Charles & Colvard, Ltd. revenue, which is key for understanding their current financial structure. Here's the quick math on where the money comes from, based on the latest reported figures and strategic emphases.

Total Net Sales for the fiscal year ended June 30, 2024, were $21,956,472.

The revenue mix shows a clear, ongoing pivot toward direct customer engagement channels.

Key revenue stream percentages, based on recent quarterly reports, illustrate this channel shift:

• Online Channels (DTC) sales represented 79% of total net sales in Q1 FY2025, showing continued prioritization of e-commerce.
• The Traditional Segment (Wholesale/B&M) sales accounted for 21% of total net sales in Q1 FY2025, reflecting a strategic reduction in this channel's reliance.

Product-wise, the focus is heavily on finished goods over loose components, though both branded product lines are crucial revenue drivers.

Revenue Component	Reported Metric/Period	Value/Percentage
Finished Jewelry Sales	Q3 FY2024 Share of Total Sales	93%
Loose Jewel Sales	Q3 FY2024 (Absolute Value)	$400,000
Online Channel Share	Q1 FY2025 (As Stated)	79%
Traditional Segment Share	Q1 FY2025 (As Stated)	21%

Charles & Colvard, Ltd. generates revenue across its core product brands, which are sold through these various channels:

• Sales derived from loose moissanite gemstones under the Forever One™ brand.
• Sales generated from lab-grown diamonds and finished jewelry featuring them under the Caydia® brand.
• Revenue from finished jewelry, which accounted for 93% of total sales in Q3 FY2024.

For context on the product mix in Q3 FY2024, the breakdown was:

• Finished jewelry net sales: $4.9 million.
• Loose jewel net sales: $400,000.